Mirarr sign Ranger deal
The old deal, signed in 1978 and subjective of extensive subsequent litigation, provided for a 5.5 per cent royalty per tonne of yellowcake sold, to be split between traditional owners and the Commonwealth (receiving 4.25 per cent combined), and the Northern Territory government (1.25 per cent).
The new deal is commercial in confidence but provides increased funding to the Mirarr people, and the announcement helped lift ERA shares by 6 per cent or 7.5c to $1.41 on Thursday.
Senior traditional owner Yvonne Margarula welcomed the agreement between ERA, Mirarr representative body the Gundjeihmi Aboriginal Corporation (GAC), as well as the federal government and the Northern Land Council, saying: "We Mirarr are happy that today, after so long, we have a fairer agreement for mining at Ranger. My father never agreed to Ranger. Our right to stop the mine was taken away by the government. It is good that after all these years we have a better agreement for Mirarr."
GAC executive officer Justin O'Brien said the Mirarr "stand to get a lot more under the reconfiguration of the arrangements ... [but the] draw on the mining company is not substantially different".
He added: "There is a degree of retrospectivity [including payment] of what I would describe as lost earnings. It's not exactly a song and dance that you get a better deal after 14 years of talks, in the twilight years of a mine."
Frequently Asked Questions about this Article…
After 14 years of negotiation, Energy Resources Australia (the Rio Tinto subsidiary operating Ranger) and the Mirarr traditional owners signed a new royalties agreement for the Ranger uranium mine. The deal is commercial in confidence but the announcement says it delivers increased funding to the Mirarr people.
The agreement was signed between Energy Resources Australia (ERA) and the Mirarr people represented by the Gundjeihmi Aboriginal Corporation (GAC), with involvement from the federal government and the Northern Land Council.
The agreement was finalised after about 14 years of talks, and it was signed two months after open‑cut operations at the Ranger mine ceased.
The announcement helped lift ERA shares by about 6 percent, a rise of 7.5 cents to $1.41 on the trading day the deal was revealed.
The old deal, signed in 1978, provided a 5.5 percent royalty per tonne of yellowcake sold. That royalty was split between traditional owners and the Commonwealth, which together received 4.25 percent, and the Northern Territory government, which received 1.25 percent.
No. The new agreement is described as commercial in confidence, so specific royalty rates and payment details were not publicly disclosed. The announcement does state the Mirarr will receive increased funding and that there is some degree of retrospective payment for lost earnings.
Senior traditional owner Yvonne Margarula welcomed the deal, saying the Mirarr are happy to have a fairer agreement after many years and noting historical grievances about the mine. Gundjeihmi Aboriginal Corporation executive officer Justin O'Brien said the Mirarr stand to get substantially more under the reconfigured arrangements while the draw on the mining company is not substantially different, and he noted some retrospective payments for lost earnings.
Investors should note that the deal boosted ERA's share price on announcement and that the agreement is commercial in confidence, so detailed financial impacts are not yet public. The article also flags retrospective payments and the fact the mine is in its twilight years, which could influence future cash flows and company obligations.
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